Tesla’s new-vehicle registrations fell 40.2% year over year to 8,837 in July 2025 across the EU, UK and EFTA, according to ACEA data reported by Reuters. In the same month and region, BYD registrations rose 225.3% to 13,503, putting the Chinese automaker ahead of Tesla for July registrations. That is a one-month comparison—not a 40% annual decline—and Tesla still registered more vehicles than BYD across the broader region in all of 2025.
What the July 2025 figures actually measure
The headline decline refers to registrations in one month, compared with July 2024, across the EU, UK and EFTA. It does not describe Tesla’s full-year sales, revenue, deliveries, or performance in the EU alone. Registration counts are a useful measure of vehicles newly registered in a market, but they should not be treated as interchangeable with company-reported deliveries or revenue.
| Measure | Tesla | BYD |
|---|---|---|
| July 2025 registrations, EU+UK+EFTA | 8,837; down 40.2% year over year | 13,503; up 225.3% year over year |
| Share of the EU+UK+EFTA market in July 2025 | 0.8%, compared with 1.4% a year earlier | 1.2% |
These are all-marque registration figures, not a like-for-like comparison of battery-electric vehicles alone. BYD sells both battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs); Tesla sells BEVs only. The July counts therefore do not show that every BYD registration was a direct BEV substitute for a Tesla.
BYD outpaced Tesla in July, but not across full-year 2025
The full-year picture is different from the July snapshot. ACEA-reported data summarized by CnEVPost show that Tesla retained the higher total across the EU plus EFTA and the UK in 2025, even as BYD grew much faster.
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| Region and period | Tesla registrations | BYD registrations |
|---|---|---|
| EU+EFTA+UK, full-year 2025 | 238,656, down 26.9% from 326,525 in 2024 | 187,657, up 268.6% from 50,912 in 2024 |
| EU only, full-year 2025 | 150,504, down 37.9% year over year | 128,827, up 227.8% year over year |
The regional boundary changes the totals and the size of the declines, so EU-only figures should not be combined with EU+EFTA+UK figures. The growth rates also need their base in view: BYD’s percentage increase was much larger, but it started from a smaller 2024 total in the wider region.
Europe’s July EV market was growing, not shrinking
Tesla’s drop came amid a broader increase in EU car registrations and electrified powertrains, according to Reuters’ report of ACEA data. EU total car registrations rose 7.4% year over year in July 2025. Battery-electric registrations rose 39.1%, hybrid-electric registrations 56.9%, and plug-in hybrid registrations 14.3%. Together, BEVs, hybrids and PHEVs made up 59.8% of EU registrations, up from 51.1% in July 2024.
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The wider EU+UK+EFTA market grew 5.9% in July. Among other major marques, Volkswagen registrations rose 11.6%, Renault rose 8.8%, and Stellantis fell 1.1%. The context points to an expanding field of competitors rather than a simple Tesla-versus-BYD story. It does not, by itself, establish why individual buyers chose one brand over another.
Why Tesla may be losing ground
More competing models and price points
Tesla’s 2025 proxy materials included a shareholder proponent’s argument that competition had increased, naming BYD as a low-cost competitor and pointing to new EVs from manufacturers in the US, Europe, Japan and Korea. The filing said this contributed to a divergence between Tesla’s sales and overall EV sales. Because that explanation appears in a shareholder proponent’s argument within Tesla’s proxy materials, it is an attributed claim—not an independent causal finding.
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Possible consumer backlash
The same proxy materials said reports had linked some sales declines to negative sentiment toward Elon Musk’s political activities. That makes backlash a reported possible factor, but the filing does not quantify its effect or show that it accounts for the July decline. The available figures establish the sales change, not the share attributable to politics.
Model timing is not a proven explanation for the size of the fall
The proxy materials also discuss the refreshed Model Y period and Tesla’s model lineup. Those details may be relevant context, but the cited information does not establish that a refresh caused a specific amount of lost registrations. It would be misleading to assign the July drop to that timing alone.
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How to read the comparison as a car buyer
Registration growth can signal that a brand is gaining traction, but it cannot tell a buyer whether a specific vehicle is affordable or suitable. BYD’s faster growth does not automatically make it the market leader over a full year, and a manufacturer’s registration count does not establish a model’s value, reliability, running costs or resale prospects.
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- Check the period: July’s 40.2% decline is year over year for one month; the full-year 2025 decline in the wider region was 26.9%.
- Check the geography: EU-only and EU+EFTA+UK totals differ materially.
- Check the powertrain mix: BYD’s marque totals include PHEVs as well as BEVs, while Tesla’s are BEVs.
- Check the measure: registrations are not the same as deliveries, revenue or market share.
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